Botched Green New Deal: Business Sentiment In Germany Is Now Free-Falling, “On The Brink”

Failing socialist-green experiment. Economists warn German economy is “on the brink”… “further decline”

Hat-tip: Blackout News

Despite all the earlier rosy promises of a flourishing green economy by the Socialist-Green government led by Olaf Scholz and Robert Habeck – and those made by the earlier Merkel CDU-led government, sentiment among German companies continues to erode badly.

Germany’s online FAZ here reports that Ifo Business Climate Index fell to 85.7 points in August 2024, down from 87.4 points in the previous month. Pessimism is spreading and deepening.

That’s the lowest level sentiment in 3 years

“The current economic slump is particularly evident in the renewed decline in the Ifo business climate index, which has left many economic experts downright perplexed. One thing is certain: the economy is in a serious crisis,” reports Blackout News. And: “no one can say exactly how far the German economy will fall.”

High energy prices, hostile business environment

The current socialist-green government has botched things so much, and now has no idea how to proceed further.

“The challenges are complex and a rapid improvement is not in sight,” comments Blackout News further. “In summary, it is clear that the German economy is currently in a serious crisis.”

Many factors are contributing to the pessimistic business sentiment. Foremost are the high energy costs, which are among the highest energy costs in the world – thanks to Germany’s botched attempt to move to green energies.

War and terrorism weighing down

Also the country’s massive regulation is hostile to free enterprise. Add to this the escalating Ukraine war, which is weighing down further on sentiment.

Another depressing factor: Germany’s uncontrolled flood of refugees from countries plagued by terrorism and war, all of which has led to rapidly rising violent crimes like the one recently witnessed in Solingen. Citizens fear for their safety, and have lost trust in the government’s ability and willingness to protect them.

Not only business sentiment is plummeting, but so is confidence in the government. Unfortunately, real change will remain elusive for the foreseeable future.

Germany is mired in pessimism and fear, with little hope in sight.

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